Morgan Stanley Stock Soars 4.41% on Target Price Hike

Morgan Stanley's stock price surged 4.40% today, reaching its highest level since March 2025 with an intraday gain of 6.16%.

The strategy of buying MS shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a 7.56% annualized return and a 37.58% total return as of the latest data point, April 11, 2025. However, the Sharpe ratio was relatively low at 0.68, indicating that the risk-adjusted returns were modest. The strategy showed the highest returns during the immediate post-high momentum period, with an average weekly return of 2.64% in the first 2 weeks after the high. Thereafter, the returns declined gradually, with an average weekly return of 0.68% in the last 3 weeks before maturity. This suggests that while the strategy worked well in the short term, the overall returns were capped by the weaker late-term performance. The maximum drawdown of -9.46% occurred during the market downturn in early 2023, highlighting the risk of holding a volatile stock like MS after a high. Overall, the strategy provided modest returns and was vulnerable to market fluctuations, making it suitable for a tactical, low-risk portfolio.

Morgan Stanley's stock price movement on May 12, 2025, was significant, with shares surging 4.41% in mid-day trading. This surge reflects a notable increase in stock value on that specific date. Additionally, Keefe, Bruyette & Woods increased their target price on Morgan Stanley shares from $138.00 to $145.00, giving the stock a "market perform" rating. This adjustment in target price and rating may have contributed to the positive sentiment and price movement observed in Morgan Stanley's stock.